EURCHF Analysis – Price Claws Back Above the 1.03270 Anchor Level
EURCHF claws back upward to an anchor level at 1.03270 as it attempts to regain lost price positions. The bears had engineered a drop in the market that led to the 0.99760 support level. But the market buyers reacted instantly to drive the price upward. An initial resistance level of 0.02470 was quickly overcome as the price clawed to the 1.03270 anchor level.
EURCHF Key Levels
Resistance Levels: 1.06070, 1.04010
Support Levels: 1.03270, 0.99760
The bears were initially in the driving seat of the market coming in from last year. This was interrupted by the buy traders as they sought a different path for the market. A change in direction wasn’t going to be smooth as the bears still had impetus. This led the market to conform to an expanding triangle pattern. Price continued to crank through the pattern till February ended.
At the beginning of March, the bears seized power and plunged the price beyond several key levels to reach 0.99760. However, the market buyers regained themselves and have driven the price back upward to where it claws at the 1.03270 anchor zone. The EFI (Elders Force Index) shows that buyers have regained market dominance as the price claws above 1.03270. The Parabolic SAR (Stop and Reverse) confirms this also.
The price is currently retracing after running out of steam at 1.04010. EURCHF is dropping back to the anchor level. Hence, the EFI has fallen back to equilibrium, and the Parabolic SAR has alternated its dots above the 4-hour candles. It is, however, expected that the price maintains its claws above the anchor level and drives further upward from there towards 1.06070.
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